Business
Funding Update
Funding Update.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 6257G Metals Exploration PLC 31 May 2017 \n\n31 May 2017\n \nMETALS EXPLORATION PLC\n \n \nMetals Exploration plc (AIM: MTL) (\"Metals Exploration\" or the \"Company\"), the natural resources exploration and development company with assets in the Pacific Rim region.\n \n \nFunding Update\n \nFurther to the announcement on 24 May 2017 the Company announces that it has signed a loan agreement (the \"Loan\") to borrow US $2million from its two major shareholders, Runruno Holdings Limited (\"RHL\") and MTL (Luxembourg) Sarl (\"MTL (Lux)\"). The shareholders will provide funding on a prorata basis to their current shareholding as outlined in Table 1 below:\n \n\n\n\n\nSHAREHOLDER\n\n\nSHAREHOLDING\n\n\n% HOLDING\n\n\nLOAN CONTRIBUTION\n\n\n\n\nRHL\n\n\n393,513,302\n\n\n28.85%\n\n\n$577,000\n\n\n\n\nMTL (Lux)\n\n\n970,532,143\n\n\n71.15%\n\n\n$1,423,000\n\n\n\n\n\n\n\n1,364,045,445\n\n\n\n\n\n$2,000,000\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nTable 1: shareholding as of 23 May 2017\n\n\n\n\n\n\n\n \nThe main commercial terms of the loan are summarised below:\n· Principal is for a total of US $2million\n· Interest rate of 20% from the date of drawdown until 31 August 2017\n· Penalty interest rate of 30% from 1 September 2017\n· The repayment date is effectively the date when drawdown occurs of funds provided from a larger debt facility which is intended to be provided by a mezzanine debt provider by 30 June 2017\n· The Loan is wholly unsecured and fully subordinate to the terms of the senior debt facility\n \nThe proceeds of the Loan will be used to facilitate a payment to the Group's senior lenders of $2.1 million falling due on 31 May 2017 which is in accordance with the payment schedule agreed with them \n \nAs previously announced to the market the Company is in advanced discussions with potential providers of a larger working capital funding facility of which US $2m would be used for the repayment of the Loan. The Board expects to finalise the terms of this facility before 30 June and will make a further announcement in due course. \n \n \nRelated Party Transaction\nThe Loan Agreement between the Company and MTL (Luxembourg) Sarl and...